Ofgem, the UK's energy regulator, has given preliminary approval for a $30.7 billion investment (£24 billion) to modernize and reinforce the country's electricity transmission and gas distribution networks.

More than $19.2 billion will be dedicated to maintaining and safely operating the gas infrastructure, while $11.4 billion will support a historic upgrade of the high-voltage electricity grid--the most ambitious program since the 1960s. An additional $1.66 billion is set aside for rapid deployment once plans are finalized.

The funding--part of the upcoming RIIO-3 regulatory cycle--will support 80 transmission projects across the UK, including 2,735 miles (4,400 km) of upgraded overhead lines and 2,175 miles (3,500 km) of new circuits, including offshore segments. The improvements are designed to enable up to 126 GW of clean energy capacity by 2030, while reducing constraint costs and reliance on imported gas.

Jonathan Brearley, CEO of Ofgem, called the plan "a long-term insurance policy" against volatile global gas markets. "The sooner we build the network we need, the lower the cost for bill payers will be in the future," he said.

Ofgem has reduced initial budget requests by over $10.2 billion to ensure consumer value, emphasizing strict delivery and efficiency benchmarks.

By 2031, the investment is expected to increase average annual household energy bills by around $31, with projected savings of nearly $102 through reduced system inefficiencies--resulting in a net benefit over time.

Final decisions on the draft plan will be made by the end of 2025 following public and industry consultation.

Source: ofgem.gov.uk